U.S. Investors Exit Equity Funds Amidst Economic Concerns
U.S. investors have continued to withdraw from equity funds for a second consecutive week, with $2.25 billion in net outflows. This trend is attributed to rising inflation, weaker economic indicators, and uncertainties surrounding President Donald Trump's reciprocal tariffs.
The outflows were primarily driven by a $1.14 billion outflow from mid-cap funds and a $451 million outflow from small-cap funds. Conversely, large-cap funds witnessed net inflows of $864 million.
Sector-wise, investors divested from consumer discretionary and healthcare equity funds by $965 million and $686 million, respectively.
In contrast, U.S. bond funds attracted a net $7.45 billion in inflows. Short-to-intermediate investment grade funds received $3.54 billion, while general domestic taxable fixed income funds saw inflows of $1.84 billion. Short-to-intermediate government and treasury funds also garnered inflows of $1.5 billion.
Money market funds experienced a modest $134 million outflow after a significant $39.06 billion inflow the previous week.